The Power of Tax Deferral

Annuities

If you have a lump sum of money and want to set it aside for your retirement, or if you want to contribute money periodically, a tax-deferred annuity may be your fund of choice. A tax-deferred annuity gives you superior performance over a taxable alternative with similar interest rates.

As with all annuities, you'll owe no taxes on the interest your funds have earned until you begin to withdraw the proceeds-at which time, you'll most likely be in a lower tax bracket!

If you opened an Amica Life tax-deferred Annuity with a $10,000 contribution (in Texas, known as "annuity premium") earning a 4.6% rate of return, here's how your money would grow (assuming a 28% tax bracket):

Years Compounded	Value in Amica Life Tax-Deferred Annuity	Value in a Taxable Fund
10	$15,530	$13,756
20	$24,117	$18,922
30	$37,453	$26,028
40	$58,164	$35,803

Traditional IRAs

Tax deferral makes an impressive growth difference when it comes to cash accumulation. And the sooner you begin, the more time your money has to grow. Look at the advantages of contributing to a Traditional IRA Annuity:

Age You Begin Contributing	Amount in Amica Life IRA Annuity at Age 65	Amount in a Taxable Account at Age 65
25	$1,150,273	$854,118
30	$885,744	$687,074
35	$673,472	$544,598
40	$503,134	$423,141

The above chart assumes a married couple in the 28% tax bracket, contributing the combined maximum to Amica Life IRA Annuities beginning in tax year 2007. The calculation assumes a 4.5% rate of return.